Ginkgo Bioworks Holdings, Inc. · NYSE:DNA
Ginkgo Bioworks — Q2 2023 Earnings Presentation
46 slides from Ginkgo Bioworks's earnings presentation, Aug 9, 2023
Slide 1: Grow with Ginkgo: Q2 2023 Update & Business Review
Grow with Ginkgo Q2 2023 Update & Business Review August 9, 2023
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation, the conference call and webcast contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, strategies, including with respect to our balance sheet and cash runway, ac
Slide 3: Agenda
Property of Ginkgo Bioworks — 3 Agenda Introduction Jason Kelly, Co-Founder and CEO Q2 2023 Financial Update Mark Dmytruk, CFO Q2 2023 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 4: Our mission: Make biology easier to engineer
Make OUR MISSION biology easier to engineer Q2 2023 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 4
Slide 5: Continuing to see strong performance across the platform
Property of Ginkgo Bioworks — 5 Continuing to see strong performance across the platform Scaling the Platform Delivering for Customers Programs Services Revenue "Ginkgo's achievement of the first milestone has both excited and inspired us, giving us the confidence to move into the 72% next phase of th
Slide 6: Shyam Sankar stepping up to lead Ginkgo's board of directors
Property of Ginkgo Bioworks — 6 Shyam Sankar stepping up to lead Ginkgo’s board of directors Shyam brings a wealth of experience in AI and government partnerships, key areas of growth for Ginkgo, and builds upon the strong foundation built by Marijn Dekkers, who will remain an active board member Sh
Slide 7: Agenda
Property of Ginkgo Bioworks — 6 Agenda Introduction Jason Kelly, Co-Founder and CEO Q2 2023 Financial Update Mark Dmytruk, CFO Q2 2023 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 8: Cell Engineering Highlights (Unaudited)
Property of Ginkgo Bioworks — 7 Cell Engineering Highlights (Unaudited) New Programs Current Active Programs Total Active Customers 44% Government Pharma & 75% Biotech 62% Food & Agriculture Industrial & Q2 2023 UPDATE & BUSINESS REVIEW Environmental Consumer & Technology (1) (1) Cell Engineering Re
Slide 9: Biosecurity Highlights (Unaudited)
Property of Ginkgo Bioworks — 8 Biosecurity Highlights (Unaudited) Biosecurity Revenue ($M) 19 North 21 America Europe 29 Asia 26 Africa Q2 2023 UPDATE & BUSINESS REVIEW Countries in which Biosecurity Gross Profit Margin Concentric has active programs, pilots, or MoUs 7 South America # Countries of o
Slide 10: Q2 2023 Financial Summary (Unaudited)
Property of Ginkgo Bioworks — 9 Q2 2023 Financial Summary (Unaudited) In millions of USD Three Months Ended June 30, Six Months Ended June 30, except new programs and % YoY 2023 2022* % YoY 2023 2022* % YoY New programs launched 21 13 62% 34 24 42% Revenue: Cell Engineering ⁽¹⁾ $ 45 $ 44 2% $ 79 $ 6
Slide 11: 2023 Full Year Outlook
Property of Ginkgo Bioworks — 10 2023 Full Year Outlook In millions of USD Historical Outlook Guidance Commentary except new programs FY2020 FY2021 FY2022 FY2023 In response to industrial biotech market conditions, we’re updating our expectation of New programs 18 31 59 100 average deal sizes in the
Slide 12: Agenda
Property of Ginkgo Bioworks — 11 Agenda Introduction Jason Kelly, Co-Founder and CEO Q2 2023 Financial Update Mark Dmytruk, CFO Q2 2023 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 13: We believe…
Property of Ginkgo Bioworks — 12 We believe… 1 2 3 We’re unlocking We’re demonstrating our The government is one of productivity gains ability to penetrate large our most valuable and across the platform existing biotech R&D budgets innovative partners Q2 2023 UPDATE & BUSINESS REVIEW Recent investm
Slide 14: We believe…: productivity gains across the platform
Property of Ginkgo Bioworks — 13 We believe… 1 2 3 We’re unlocking We’re demonstrating our The government is one of productivity gains ability to penetrate large our most valuable and across the platform existing biotech R&D budgets innovative partners Q2 2023 UPDATE & BUSINESS REVIEW Recent investm
Slide 15: Downstream value
Property of Ginkgo Bioworks — 14 Downstream value Customers will always want cell engineering with less risk, faster, and cheaper. We aim to deliver all three. Q2 2023 UPDATE & BUSINESS REVIEW Our platform improves with scale so when we add a new customer it benefits other customers on the platform.
Slide 16: Operationalizing cell engineering can open up innovation
Property of Ginkgo Bioworks — 15 Operationalizing cell engineering can open up innovation Q2 2023 UPDATE & BUSINESS REVIEW Computer chips used to be made by-hand. Most cell programming today is still a laborious Improvements in manufacturing technologies made it by-hand process. We are working to op
Slide 17: Platform Output & Unit Economics
Property of Ginkgo Bioworks — 16 Recently established Operations team evaluated asset productivity and assessed that the Foundry could support 2-3x demand with minimal incremental investment in people or equipment Plus: Scale up automation Foundry Diagnostic and digital investments Detailed diagnost
Slide 18: We are already seeing the results of these efforts
Property of Ginkgo Bioworks — 17 We are already seeing the results of these efforts Reduced program launch Driving significant in-year lead time by 48% so far in 2023 productivity improvements (reduced internal activities by 9 weeks) (bu d g e t (overall cash flow targets unchanged . P l a n n e Labo c
Slide 19: Operational improvements allow adding programs without increasing spending
Property of Ginkgo Bioworks — 18 We believe these operational improvements allow us to keep adding programs at a rapid pace without increasing spending commensurately Status Quo Near Term Medium Term Marching towards platform profitability as we are able to Mature unit economics include better measur
Slide 20: We believe…: expanded relationships with technically sophisticated customers
Property of Ginkgo Bioworks — 19 We believe… 1 2 3 We’re unlocking We’re demonstrating our The government is one of productivity gains ability to penetrate large our most valuable and across the platform existing biotech R&D budgets innovative partners Q2 2023 UPDATE & BUSINESS REVIEW Ginkgo is deli
Slide 21: Opportunity to grow with and grow into our customers
Property of Ginkgo Bioworks — 20 Ginkgo has the opportunity to both growth with and grow into our customers Non-exhaustive PHARMA INDUSTRIAL BIOTECHNOLOGY AGRICULTURE LARGE COMPANIES Q2 2023 UPDATE & BUSINESS REVIEW STARTUPS
Slide 22: Returning customers account for over one third of new programs
Property of Ginkgo Bioworks — 21 Ginkgo has the opportunity to both growth with and grow into our customers Non-exhaustive PHARMA INDUSTRIAL BIOTECHNOLOGY AGRICULTURE LARGE COMPANIES Even with our rapid growth, returning customers typically Q2 2023 UPDATE & BUSINESS REVIEW account for over one third
Slide 23: Customer retention dynamics by company stage and in-house capability
Property of Ginkgo Bioworks — 22 Customer retention dynamics are impacted by stage of company as well as the level of in-house biotech capability Biotech is high % of R&D Q2 2023 UPDATE & BUSINESS REVIEW Startup Mature Biotech is low % of R&D
Slide 24: Startups can be loyal long-term customers with R&D cycles
Property of Ginkgo Bioworks — 23 Startups can be particularly loyal long-term customers, but have natural “cycles” of R&D spending and are sensitive to market strength Biotech is high % of R&D “Built on Ginkgo” Customers cycle in and out but Ginkgo is often their main R&D solution and so we can grow
Slide 25: Startups can be loyal long-term customers with R&D cycles
Property of Ginkgo Bioworks — 24 Startups can be particularly loyal long-term customers, but have natural “cycles” of R&D spending and are sensitive to market strength Biotech is high % of R&D “Built on Ginkgo” Customers cycle in and out but Ginkgo is often their main R&D solution and so we can grow
Slide 26: Mature customers can build natively on Ginkgo
Property of Ginkgo Bioworks — 25 Mature customers looking to innovate with biotech also have the potential to build “natively” on Ginkgo, creating deep relationships Biotech is high % of R&D Q2 2023 UPDATE & BUSINESS REVIEW Startup Mature “Biotech Built on Ginkgo” As biotechnologies gain share of cu
Slide 27: Mature customers can build natively on Ginkgo: program examples
Property of Ginkgo Bioworks — 26 Mature customers looking to innovate with biotech also have the potential to build “natively” on Ginkgo, creating deep relationships Biotech is high % of R&D 2021 2022 2023 Q2 2023 UPDATE & BUSINESS REVIEW Second Third Startup First program program Mature program to
Slide 28: Demonstrated successes with established biotech R&D leaders
Property of Ginkgo Bioworks — 27 But it is our recent demonstrated successes with established biotech R&D leaders that is likely to drive our near-term performance Biotech is high % of R&D Outsourcing Opportunity Large established biotech R&D budgets which Ginkgo can grow into if we prove we can add
Slide 29: Established biotech R&D leaders: expression host collaboration
Property of Ginkgo Bioworks — 28 But it is our recent demonstrated successes with established biotech R&D leaders that is likely to drive our near-term performance Biotech is high % of R&D Outsourcing Opportunity Large established biotech R&D budgets which Ginkgo can grow into if we prove we can add
Slide 30: Established biotech R&D leaders: Merck collaborations
Property of Ginkgo Bioworks — 29 But it is our recent demonstrated successes with established biotech R&D leaders that is likely to drive our near-term performance Biotech is high % of R&D Outsourcing Opportunity Large established biotech R&D budgets which Ginkgo can grow into if we prove we can add
Slide 31: We believe…: government as innovative partner
Property of Ginkgo Bioworks — 30 We believe… 1 2 3 We’re unlocking We’re demonstrating our The government is one of productivity gains ability to penetrate large our most valuable and across the platform existing biotech R&D budgets innovative partners Q2 2023 UPDATE & BUSINESS REVIEW Some of our mo
Slide 32: Government research programs can seed critical technologies
Property of Ginkgo Bioworks — 31 Government research programs can seed critical technologies for national security and broader civilian / commercial applications Though government programs do not typically generate downstream value opportunities, Ginkgo has long participated in government-led innova
Slide 33: Q2 2023 UPDATE & BUSINESS REVIEW
Q2 2023 UPDATE & BUSINESS REVIEW Property of Ginkgo Bioworks — 32
Slide 34: Two new government programs: B24IC and RPM
Property of Ginkgo Bioworks — 33 Recently added two new government programs that sit at the intersection of cell engineering and biosecurity Biointelligence and Biosecurity for the Reimagining Protein Intelligence Community (B24IC) Manufacturing (RPM) July 13, 2023 July 19, 2023 Developing a genomic
Slide 35: Convergence of biosecurity and cell engineering opportunities
Property of Ginkgo Bioworks — 34 As our biosecurity business matures, we are beginning to see more convergence with cell engineering opportunities MONITOR IDENTIFY RESPOND FELIX and B24IC programs create Rapid discovery and tools that may help identify and manufacturing infrastructure could attribut
Slide 36: Let's grow the world we want to see
Let’s grow the world we want to see
Slide 37: Agenda
Property of Ginkgo Bioworks — 36 Agenda Introduction Jason Kelly, Co-Founder and CEO Q2 2023 Financial Update Mark Dmytruk, CFO Q2 2023 UPDATE & BUSINESS REVIEW Strategic Review Jason Kelly, Co-Founder and CEO Q&A Session Moderated by Anna Marie Wagner, SVP Corporate Development
Slide 38: Appendix
APPENDIX
Slide 39: Cell Program Counts
Property of Ginkgo Bioworks — 38 Cell Program Counts Three Months Ended June 30, Six Months Ended June 30, LTM (1) 2023 2022 2023 2022 2023 New Programs 21 13 34 24 69 Current Active Programs 105 73 118 77 139 Cumulative Programs 198 129 198 129 198 (1) Last Twelve Months Ended June 30, 2023 Q2 2023
Slide 40: Adjusted EBITDA Reconciliation (Unaudited)
Property of Ginkgo Bioworks — 39 Adjusted EBITDA Reconciliation (Unaudited) In millions of USD Three Months Ended June 30, Six Months Ended June 30, 2023 2022* 2023 2022* Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders $ (173.3) $ (668.8) $ (378.3) $ (1,259.3) Interest income, n
Slide 41: Segment Information (Unaudited)
Property of Ginkgo Bioworks — 40 Segment Information (Unaudited) In millions of USD, except $ YoY Three Months Ended June 30, Six Months Ended June 30, 2023 2022* % YoY 2023 2022* % YoY Revenue: Cell Engineering ⁽¹⁾ $ 45 $ 44 2% $ 79 $ 66 21% Biosecurity 35 100 (65%) 82 247 (67%) Total Revenue 81 14
Slide 42: Cell Engineering Revenue (Unaudited)
Property of Ginkgo Bioworks — 41 (1) Cell Engineering Revenue (Unaudited) In millions of USD, except % of total Three Months Ended June 30, Six Months Ended June 30, 2023 % of Total 2022 % of Total 2023 % of Total 2022 % of Total Related Parties $ 6.5 14% $ 8.0 18% $ 11.2 14% $ 21.5 33% Third Partie
Slide 43: Stock-Based Compensation (Unaudited)
Property of Ginkgo Bioworks — 42 Stock-Based Compensation (Unaudited) In millions of USD, except % YoY Three Months Ended June 30, Six Months Ended June 30, 2023 2022 % YoY 2023 2022 % YoY Total Stock-Based Compensation $ 62.5 $ 607.3 (90%) $ 137.7 $ 1,266.3 (89%) Amount included in Research and Dev
Slide 44: Stock Based Compensation Expense Supplement
Property of Ginkgo Bioworks — 43 Stock Based Compensation Expense Supplement (Unaudited) As disclosed in our SEC filings, the vast majority of Ginkgo’s stock-based compensation expense since going public relates to the accounting treatment of RSUs granted prior to Ginkgo becoming a publicly traded co
Slide 45: Founder Selling Supplement
Property of Ginkgo Bioworks — 44 Founder Selling Supplement Ginkgo’s Founders currently own over 20% of the outstanding shares of Ginkgo, the vast majority of which are in Class B shares ● Class B shares are not freely tradable (must be converted to Class A) and are often not shown on automated data
Slide 46: Share Supplement
Property of Ginkgo Bioworks — 45 Share Supplement Illustrative Fully-Diluted Share Count Shares in millions Basic Shares (1) 1,946.5 RSUs (2) 184.2 Options (Treasury-stock method) (3) 6.3 Q2 2023 UPDATE & BUSINESS REVIEW Fully-Diluted Shares 2,137.0 Memo: Remaining Earnout Shares Outstanding (4) 152
Ginkgo Bioworks Holdings — Q2 2023 Earnings Presentation on 6ix